The practical meat man knows that there are no two sides of beef which are exactly alike. While the grade of a carcass may be uniform, there will always be a slight variation in finish, conformation and weight. For that reason, the meat retailer is at a decided disadvantage in not having a standardized product. This lack of standardization of product is especially noticeable when the retailer tries to establish correct cost and selling prices. When a dry-goods or a hardware merchant buys a number of articles of a certain product, he usually knows exactly what these products have cost him, and he can establish a selling price accordingly. In the retail meat business this becomes a more difficult matter, since the meat retailer does not handle carcasses of an absolutely uniform grade and weight. This is made still more difficult at certain times of the year when there is a great difference in the finish, quality and conformation of cattle, lambs and veal.
Cutting Tests Required
In order to establish correct costs and selling prices, the retailer finds that it will be necessary to make very frequent cutting tests, as this is the only method whereby he can establish such figures. Making cutting tests requires time, but to make them periodically is an absolute necessity in the modern retail business. Investigations have proved that very few retailers will take the time to make periodical cutting tests, hence they are ignorant of the exact facts pertaining to the product they handle and what it should sell for in order to bring a fair profit.
If the retailer could handle a standardized meat product, and if each carcass were of uniform weight, quality and conformation, it would be very simple to establish standard cutting practices and standard costs on the product handled. This would eliminate ignorant competition, price cutting, and other evils in the industry.
i have been wanting to do some cutting tests myself. i am not comfortable with our prices . I think most are too high. I remember when i started cutting i was trianed by a guy who had been cutting for 50 years. I have a lot of respect for what he taught me. we always maiuntained a 35% mark up. now almost every store i worked in since is doing 100 percent or better mark up. I know they are thinking we need more profit out of every item we sell so that we can pay the wages and other expenses. but in my mind I believe that discourages the customers from buying as much or anything at all. If we lowered the prices to 35 percent mark up wouldn't that give us an advantage over our competitors who are doing 100 percent mark ups? wouldn't that bring in more customers who will fill their carts to the top? wouldn't that mere 35percent suddenly add up to be a huge profit becuase it would be actually selling and not be pulled and given to the deli or reduced. I learned to cut at Save A Lot I was trained by a meat cutter with 50 years of experience. At save a lot meat flew out of that case customers literally filled their carts all the way to the top. it was amzing. and since I left save a lot 10 years ago I have not seen that happen at any of the 4 or 5 stores i worked for since. I do realize that meat prices are much higher than they were 10 years ago but i also believe that meat retailers are getting overly greedy and are attempting to raise their profits. I think instead they are alienating their customers. these days i rarely see customers with a shopping cart.. they usually just want a couple things then they are gone. its depressing. this is why i want to open my own little market some day because I think i could elimate the competion by not being greedy. maybe i am being naive what do you folks think? How much do you mark up your products? I was saying I want to do some cutting tests myself but I don't have control over our pricing sceme. but it might give me some evidence to talk to the boss about.
I do the cutting test for the region I am in. I have another friend in the region that does one too. We are pretty consistent on our findings being we are both old meat heads with over 25 years each. My company only does a 36-42% mark up in meat. We use Meat to get them in the door. Next week we have ribeyes on sale for $5.99/lb for choice and $6.99/lb for Angus We also do Choice tenders consistently on sale for $8.99/ lb in the cryrovac
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Joe Parajecki
Operations Manager/ Partner
Kettle Range Meat Company, Milwaukee WI
Member Meat Cutter Hall of Fame and The Butcher's Guild
